Friday, July 30, 2010

Rare Earth Metals: Molycorp IPO Very Weak (MCP)

The stock is changing hands at $12.32, down another 53 cents.
The issue was priced below the expected range and closed down from there.
$14.00 price, closed its first day at $12.85.
Here's Greentech:Molycorp: Another Dud Green IPO

Tesla, Jinko above water; Molycorp, A123, Codexis and Energy Recovery below
The green industry is right one out of every three times.

In other words, it is starting life as a tadpole -- that is, underwater.

That's becoming, unfortunately, a pattern in the industry. A123 Systems held an IPO to great fanfare (and the occasional note of skepticism) last year. The stock went out at $13.50 It rose sharply but then dropped to the $10 to $11 range. Suddenly, everyone was a critic. Codexis, the biofuel and green chemistry specialist, sold 6 million shares for $13 a share earlier this year. The stock now goes for $9 a share. In 2008, desalination expert Energy Recovery went out at $8. It now sells for $4. Energy Recovery went public before the crash so the price decline can be attributed to a large extent to the recession, but a drop is a drop....MORE